Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Tenterden. Clearly, the length of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the flat or house needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Tenterden have the right to extend the lease for an additional ninety years under statute. You should give due attention before delaying your Tenterden lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a freeholder in Tenterden,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tenterden valuers.
Finn was the the leasehold owner of a conversion flat in Tenterden on the market with a lease of just over 61 years outstanding. Finn informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Finn to exercise his statutory right. Finn obtained expert legal guidance and secured an acceptable resolution informally and sell the property.
In 2010 we were called by Ms H King who, having took over the lease of a studio flat in Tenterden in May 2006. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable flats in Tenterden with 100 year plus lease were in the region of £227,800. The mid-range amount of ground rent was £45 collected per annum. The lease lapsed on 6 July 2090. Given that there were 65 years left we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.
Last Autumn we were e-mailed by Mr and Mrs. L Wilson , who was assigned a lease of a ground floor flat in Tenterden in July 1997. The question was if we could estimate the premium would be to extend the lease by an additional years. Comparative residencies in Tenterden with a long lease were valued about £275,000. The mid-range ground rent payable was £55 collected every twelve months. The lease expired on 23 May 2101. Considering the 76 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.